SAN FRANCISCO (AP) — Online review site Yelp Inc. reported a smaller net loss and sharply higher revenue than Wall Street expected on Wednesday, surpassing analysts' expectations at a time when many of its fellow freshly public Internet companies are taking a beating from investors.
Its outlook was also better than anticipated, and its shares rose sharply in after-hours trading.
The company lost $2 million, or 3 cents per share, in the April-June period. That compares with a loss of $1.2 million, or 8 cents per share, in the same period a year earlier. Yelp was still privately held last year and it had far fewer outstanding shares, which made its loss larger on a per-share basis.
Revenue jumped 67 percent to $32.7 million, from $19.6 million a year ago.
Analysts, on average, were expecting a loss of 6 cents per share, on revenue of $30.7 million, according to FactSet.
Yelp expects revenue of $34.5 million to $35.5 million for the current quarter, above analysts' average expectation of $34.4 million. Wall Street estimates range from $33.8 million to $34.7 million.
For the full year, the San Francisco-based company is forecasting revenue of $135 million to $136 million. Analysts are expecting lower revenue of $131.2 million, on average, with estimates ranging from $130 million to $132 million.
Yelp makes money from advertising on its site, which lets ordinary people review local restaurants, bars, stores and other businesses.
CEO Jeremy Stoppelman said Yelp is seeing an increase in how engaged its users are, especially on mobile devices, "where their connection to local businesses is enhanced by the location-based capabilities" of their gadgets
Yelp's stronger-than-expected results came less than a week after Facebook Inc. reported its first quarterly results as a public company. While its results met Wall Street's muted expectations, investors spooked by slowing revenue growth have sent Facebook's stock to its lowest level since the company went public in May.
Yelp's shares, meanwhile, shot up $2.98, or 15.8 percent, to $21.80 in after-hours trading. The stock has traded in the range of $14.10 and $31.96 since Yelp went public on March 2 at $15 per share.